Randolph, NJ asked in Employment Discrimination and Employment Law for New Jersey

Q: Can my employer lower my compensation plan because I made too much money?

Set an agreed upon lower base with a high compensation plan. Did a great job with sales and now my employer told me he was cutting my compensation plan by 75% because I made too much money. But also congratulations me on performance. Told me no room for negotiation and I had to give my answer within 1 week.

1 Lawyer Answer
Rhiannon Herbert
Rhiannon Herbert
  • Employment Law Lawyer
  • Columbus, OH

A: This will depend on whether you have a written employment contract stating that you would be paid the agreed-upon amount for a specific amount of time (for example, for the next year). If you don't have this, then unfortunately you do not have a claim under federal law, as the Fair Labor Standards Act only requires that you be paid above the minimum wage for your hours worked.

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